Eternity Law International — News — Company registration in Lithuania

Company registration in Lithuania

Published:
December 14, 2020

Entrepreneurs often choose Lithuania to register their own company for several reasons:

  • potential access to European markets;
  • protection against double tax payments;
  • the registration process takes no more than a day;
  • renewal payments must be made starting from the second year of the companyэs operation.

As an offshore zone, Lithuania is not often mentioned. Despite the fact that the 0 rate in this country is not applied in all cases, the conditions of the financial field here are very favorable for the opening and further development of a new business project.

Jurisdiction

The initial capital is fixed by Lithuanian legislation in the amount of 2.9 thousand euros. A company can consist of one member who is both a legal entity and an individual. Non-residents are allowed. Registration and further servicing of a Lithuanian company takes place in a UAB form.

Taxes

Lithuania offers fairly loyal tax conditions. If we draw a parallel with other European states, then the Lithuanian rates will be profitable to stand out on it, since they are the lowest in this country. Profits are subject to only 5% tax, provided that the income for the annual period does not exceed 288,620 thousand euros, and the staff consists of ten people.

A company can be exempted from paying dividend tax if the company receives these dividends from offshore firms and owns at least ten percent of the shares of the subsidiary within the last year. To receive the privilege of paying tax duties to increase capital, you need to buy shares of a Lithuanian company registered in the jurisdiction of any other Eurozone state and hold them for at least two years.

Accounting

Foreign companies registered in Lithuania are not exempt from accounting. This can be entrusted to specialists who do not belong to the company’s staff. They should draw up reports based on information regarding the activities of the enterprise. Residents have some advantages. For example, local entrepreneurs are allowed to open an account in any European bank completely free of charge, while a non-resident must not only be personally present at the opening, but also pay a fee of 140 euros.

If you need to register a company in Lithuania, our specialists will help you register a company quickly and efficiently. Also, you can buy a ready-made company in Lithuania. Write to us in the CRM form and we will help you register a company.

Eternity Law International specialists will provide you with qualified advice on the acquisition of an offshore company, opening a bank account in any jurisdiction, as well as further support of your company’s activities at any stage.

We offer ready-made European and offshore companies. It takes 2 days to reissue documents for new owners.

If you have any questions or need advice on registering or buying a company, call us at the phone numbers listed on the website, or write to us in the CRM form located at the bottom of the page. Our specialists will answer you online.

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This region has become an alluring  gateway for venturers looking to raise their profit-oriented activity in the EU trade sphere. This region offers beneficial conditions for company formation, including efficient processes, tax benefits, and low maintenance costs. This article would break down the different costs associated with launching and retaining an organisation in Lithuania, making it easier to understand how much it costs to register a company in Lithuania and what to expect in terms of ongoing expenses.

Cost of Organisation Enrollment

The prices for launching and retaining establishments are minor if you look at other countries, making it an appealing option for investors looking for an affordable entry point into the EU trade. The company registration cost in Lithuania depends on several factors, encompassing the lawful form of the commercial functioning, the facilities demanded during the setup process, and any additional administrative fees.

The most common type of organisation submissions is a UAB. For entrepreneurs looking to register a UAB, the initial equity demand is €2500. These equity can be like cash or assets and are lawfully demanded to be deposited into a bank account before the enrollment routine can be completed.

The company registration prices in Lithuania typically cover administrative fees, notary facilities, and state registration fees. These fees can vary but are generally affordable. In addition to these standard levies, investors may choose to hire a legal expert or consultant to help navigate the process. This can increase the overall cost slightly, but it ensures that the registration is completed quickly and without any complications.

On average, the total business registration cost in Lithuania can range from €1500 to €2300, depending on the level of professional assistance needed. This makes the cost of company registration in Lithuania one of the most competitive in the region, offering excellent value for venturers who desire to commence a lawful presence in Europe.

Cost of Organisation Maintenance 

Once the organisation is registered, there are ongoing company maintenance fees in Lithuania that profit-oriented organisations owners need to consider. Fortunately, Lithuania has cost-effective systems for maintaining a business, especially when compared to other EU nations.

From the second year of operation onwards, companies are required to pay renewal fees. These annual fees for company maintenance in Lithuania include various mandatory payments, such as accounting services, tax filings, and administrative costs to ensure obedience with local laws. The cost for maintaining an organisation can vary depending on the size and complexity of the business, as well as whether proficient facilities are used to handle accounting and compliance matters.

For most small to medium-sized commercials, company maintenance fees in Lithuania typically range from €1,000 to €3,000 annually. This includes basic accounting services, which are often outsourced to specialised firms. Larger companies with more complex accounting needs may face higher maintenance costs, but for many startups and tiny businesses, the company registration and maintenance fees in Lithuania  remain highly competitive.

It’s also worth noting that non-residents may incur additional expenses when maintaining a company. For example, non-resident profit-oriented organisations owners have to be physically present to open a bank account and may also face a fee of around €140 for the account setup.

Extra Outcomes for Organisation Enrollment and Retainment 

In addition to the company registration cost in Lithuania and ongoing maintenance fees, there are a few other expenses to consider when forming a business in the country. These costs typically arise during the setup process and depend on the specific needs of the business.

One common additional expense is lawful consultation. While it might be submitted to an organisation without lawful assistance, many entrepreneurs choose to hire a consultant or legal expert to ensure that everything is completed correctly. This can increase the total company registration prices in Lithuania but provides peace of mind during the formation process.

Another potential expense is the setting up of TM or intellectual property. This is not mandatory for all businesses but may be essential for companies that rely on proprietary products or services. Trademark registration is an additional cost that entrepreneurs should factor into their budgeting.

For businesses that demand a physical headquarters or storefront, renting space is another key expense. While rental prices vary depending on the location, Lithuania offers reasonably priced commercial real estate compared to many other EU countries. This makes it easier for new companies to find affordable office space as they establish their operations.

Moreover, company registration fees comparison in Lithuania shows that despite the competitive upfront costs, businesses still benefit from additional advantages such as lower tax rates. For companies with annual revenues below €288,620 and a workforce of ten or fewer, the corporate tax rate is a mere 5%, significantly lower than in many other European countries.

Conclusion

Lithuania’s business-friendly environment makes it an ideal location for investors searching to raise and grow their profit-oriented functions in Europe. The prices for company formation in Lithuania are reasonable, with the charges of organisation enrollment being among the lowest in the region. Additionally, the company maintenance fees in Lithuania remain affordable, especially for small and medium-sized enterprises.

By carefully budgeting for both the profit-oriented establishment setting up and charges and ongoing operational expenses, entrepreneurs can take full advantage of Lithuania’s favourable conditions for business. Whether you are starting a brand-new company or considering purchasing a ready-made company, Lithuania offers a cost-effective gateway to the European market.
If you are interested in how much does it cost to register a company in Lithuania feel free to reach out for professional guidance. A consultant can provide detailed advice on how to successfully register and maintain a company in Lithuania, guarantee compliance with regional supervisions and maximise the financial benefits offered by this attractive jurisdiction.

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